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The Redbubble Ltd (ASX: RBL) share price has been an exceptional performer in 2020.

Since the start of the year the ecommerce company’s shares have stormed a massive 288% higher.

Where next for the Redbubble share price?

Despite its incredible gains this year, one leading broker believes the Redbubble share price could still be going a lot higher from here.

According to a note out of Goldman Sachs, its analysts have a buy rating and $5.20 price target on the company’s shares. This implies potential upside of 23% over the next 12 months.

What did Goldman Sachs say?

Goldman Sachs likes Redbubble due to the large market opportunity it has thanks to its operations sprawling across a number of product categories.

It explained: “To give a sense of the potential market opportunity for RBL we focus on the online apparel and homewares & home furnishings categories. […] these categories were a US$163bn market in RBL’s core geographies in 2019 (representing a 14% 2010-2019 growth CAGR), and this is before the large acceleration in eCommerce penetration experienced in 2020. Worldwide, these categories were a US$381bn market in 2019.”

Despite Redbubble’s strong growth in FY 2020, it has barely penetrated this market, which is growing quickly.

Goldman commented: “To give some context to the size of RBL, it generated A$474mn in gross transaction value in FY20 (US$318mn), implying less than 0.2% penetration of these categories alone in core geographies. Our Global Internet team forecast global e-commerce to grow at 16.8% CAGR from 2019 to 2024. Applying this overall growth rate to apparel and homewares & home furnishings in RBL’s key markets implies an addressable market of US$354bn in 2024.”

Can the Redbubble share price go even higher?

Another company Goldman Sachs is very positive on is Temple & Webster Group Ltd (ASX: TPW).

In fact, it is more positive on the online homewares and furniture retailer due to its belief that it is capable of growing at an even stronger rate in the coming years. More on that here.

However, the broker has suggested that Redbubble’s shares could be worth upwards of $10.75 if it can increase its sales growth rate to a similar level.

It explained: “TPW has a materially more expensive rating reflecting, in our view, its more consistent execution track record as discussed earlier. If RBL were to achieve a revenue CAGR over our 10yr DCF horizon similar to that of TPW (which is 21% vs. 11% for RBL), our DCF value for RBL would increase from A$4.75 to A$10.75 (assuming no change to our EBITDA margin forecasts).”

“Given there is structurally no reason why we believe RBL’s medium-to-long-term growth trajectory should be lower than TPW’s, this would suggest there is arguably more option value in our target price for RBL relative to TPW, but we emphasise that consistency in execution remains key to close this hypothetical discount,” it concluded.

This could make it well worth keeping a close eye on Redbubble’s progress in the coming quarters.

More reading

• Why Galaxy (ASX:GXY) and these ASX shares just hit new highs
• 3 ASX shares poised for huge growth in FY21
• Temple & Webster (ASX:TPW) share price hits record high after broker lifts its price target
• Why De Grey, Scentre, Splitit, & Temple & Webster shares are pushing higher
• 3 ASX tech shares that are still in the buy zone

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Redbubble (ASX:RBL) share price on a path to $10.75? appeared first on Motley Fool Australia.

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I think that Rural Funds Group (ASX: RFF) is one of the best ASX dividend shares that Aussies can buy.

It’s a listed agricultural real estate investment trust (REIT) which owns a variety of farmland across the country.

Here are four reasons why I think it could be a strong income idea:

Yield

For starters, an ASX dividend share has to have a solid starting dividend yield. At the current Rural Funds share price it offers a FY20 distribution yield of 4.6%. However, based on the distribution guidance of 11.28 cents per unit in FY21 it has a forward distribution yield of 4.75%.

Whilst that’s not exactly the biggest yield out there, Rural Funds offers a good yield starting point in this era of low interest rates.

Diversification

For me, I prefer the idea of investing in an ASX dividend share for the long-term. I don’t want to be constantly chopping and changing. The idea is to benefit from the (hopefully growing) dividends each year and steady capital growth.

Not many blue chip ASX shares give me the confidence to invest for the long-term.

We all need food. Farmland has been a useful asset for many centuries. Rural Funds is a good way to diversify your portfolio to farmland. Most food related ASX shares are volatile, whereas as the landlord Rural Funds doesn’t take on the operational risks with things like droughts, that’s on the tenant. However, Rural Funds owns a large amount of water entitlements to help tenants even during tough water times.

The ASX dividend share owns a diversified farmland portfolio. At the moment it owns five types of farmland: almonds, macadamias, cattle, vineyards and cropping (cotton and sugar cane). Within these sectors it owns 61 properties spread across different climactic zones and different states.

I think it’s important for an agricultural business to be strongly diversified like Rural Funds is because it’s hard to know what demand for different commodities will be like in the future. We also don’t know if the drought situation is going to get worse or better over the coming years.

It also has good diversification by its tenants. Based on revenue, Rural Funds disclosed that 78% of its tenants are large entities, with many of them listed, such as JBS, Olam, Australian Agricultural Company Ltd (ASX: AAC), Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE).

Productivity improvements

A key strategy for the ASX dividend share is that it is investing in productivity improvements at its farms, particularly its recently-acquired cattle farms.

Between FY17 and FY20 Rural Funds only paid out about 80% of its rental cash profit, allowing it to re-invest the rest into projects that would hopefully increase the valuation and rental potential of its farms.

Rural Funds also has plans to invest in developing macadamia orchards at some of its properties. In some cases this involves converting the area into macadamia farms which will generate more rent for Rural Funds.  

Growth

As an ASX dividend share, Rural Funds need to demonstrate the ability to grow its earnings and distribution for me to want to buy it (or write about it).

Rural Funds aims to grow its distribution by 4% per annum. It’s able to achieve this partly due to the productivity improvement investing, but it’s also down to its contracted rental increases.

Its farms have contracted rental increases with a fixed 2.5% increase or linked to CPI inflation. Some of the contracts have have infrequent market reviews.

Whilst the contracted increases don’t amount to a strong growth rate, it helps the ASX dividend share grow its distribution grow faster than inflation each year.

Foolish takeaway

As I mentioned, the Rural Funds distribution yield is around 4.75%. With how low interest rates are, I think it’s a decent starting place. The Rural Funds share price has gone up strongly in recent weeks, so I’d only start with a small parcel and buy more on price weakness.

More reading

• 3 retirement myths you can’t afford to believe
• Not sure about Westpac (ASX:WBC)? Buy these ASX dividend shares instead
• Why I would buy Telstra (ASX:TLS) and this ASX dividend share
• ASX dividend shares raising their dividends like clockwork
• 2 reliable and high quality ASX dividend shares to buy today

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Afterpay Ltd (ASX: APT) share price has been the darling of the S&P/ASX 200 Index (ASX: XJO) for some time now. 

Shares in the buy now, pay later (BNPL) leader have rocketed in value in recent years. In fact, the Afterpay share price is up 141.1% in 2020 and 2,403.1% since its first closing price on 30 June 2017.

All of these numbers would suggest that Afterpay is not a great buy right now. However, shares in the BNPL company have slumped 23.1% since hitting a new record high in late August.

That to me says that there could be a buying opportunity for investors willing to roll the dice.

Why the Afterpay share price could be a buy

Falling by nearly a quarter in less than a month is enough to make any value investor pay attention.

To be clear, Afterpay still trades at a wildly high price to sales ratio and actually hasn’t posted a profit yet.

That hasn’t stopped keen investors from jumping on board the BNPL train. US tech stocks have been volatile in recent days and we’re starting to see that in the Australian market with the Afterpay share price falling 5.4% lower in yesterday’s trade.

I think much of Afterpay’s true value hinges on both economic conditions and its expansion plans. If the economy can remain intact, with strong government support, then I believe online retail may continue to boom.

Similarly, strong execution in offshore markets could be the key to finally realising some of the promised growth that investors are banking on.

There is tight competition in the BNPL sector with more companies eyeing off a slice of the market. But Afterpay is an incumbent and quickly becoming a global leader alongside the likes of Klarna Bank AB. 

Foolish takeaway

I think there is certainly more volatility ahead of the Afterpay share price. The question for investors is whether this represents a large enough dip to buy in and hold for the long-term.

If the economy holds up and Afterpay’s USA success continues, I could see it surging past $100 in early 2021.

More reading

• Are ASX gold shares like Newcrest (ASX:NCM) still good value?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• What’s moving the Scentre (ASX:SCG) share price today?
• Why the Cyclopharma (ASX:CYC) share price surged to record high today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Afterpay (ASX:APT) share price could be a buy appeared first on Motley Fool Australia.

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It’s hard to know if ASX gold shares like Newcrest Mining Limited (ASX: NCM) are in the buy zone.

Many of Australia’s top gold miners have seen their values surge in 2020 as investors have looked for a safe haven away from the coronavirus pandemic-induced volatility.

So, as markets continue to move, is there still time to buy ASX gold shares?

Why ASX gold shares are still a good buy

It’s important to distinguish between strategic and tactical investing. Investors should generally have a long-term view towards investing and portfolio construction.

However, that doesn’t mean there can’t be short-term deviations from the plan to capitalise on good opportunities.

The Newcrest share price has jumped 9.8% in 2020 while the S&P/ASX 200 Index (ASX: XJO) has fallen 12.1% lower.

It’s even better news for investors in some of the other large ASX gold shares. The Saracen Mineral Holdings Limited (ASX: SAR) share price has surged 56.6% higher this year thanks to strong investor demand.

I’m not personally a big investor in ASX gold shares. However, some pure play shares can provide some benefits within a diversified portfolio.

One is a downside hedge of sorts given gold prices often push higher amid market volatility and bear markets. These stocks could also provide some protection through a higher gold price if we see inflation start to rise in 2021.

I think investors still need to be careful when picking tactical investments, especially at the moment. I personally prefer to buy those with strong cash flow generation like Saracen rather than some of the prospectors.

Foolish takeaway

It’s easy to think that ASX gold shares are overvalued in the current market. However, with bond yields at all-time lows and other defensive shares also surging, there aren’t a lot of options for downside protection.

I wouldn’t say gold is the ultimate defensive share but it may provide some benefits if we enter another bear market or a period of high inflation.

More reading

• Why the Afterpay (ASX:APT) share price could be a buy
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• What’s moving the Scentre (ASX:SCG) share price today?
• Why the Cyclopharma (ASX:CYC) share price surged to record high today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Nanosonics Ltd (ASX: NAN) share price has been out of form in recent weeks.

Since peaking at $6.87 in late August, the infection control specialist’s shares have tumbled 14% lower to $5.89.

Why is the Nanosonics share price down 14% in four weeks?

Investors have been hitting the sell button since the release of its full year results for FY 2020.

However, rather than selling shares because of the pandemic’s impact on its performance, I suspect the real driver of this decline was yet another delay with the company’s plans to launch new products.

Management warned: “Commercialisation of the new technology is no longer expected to be in FY21 but will likely be in FY22, with the ultimate launch timing continuing to be dependent on the necessary technical milestones being met as well as the timing of individual market regulatory approvals.”

This was very disappointing, especially given how many times the company has now failed to deliver on its new product promises.

Is this a buying opportunity?

While Nanosonics certainly isn’t a bargain buy, I still believe it could be a good long term investment.

Though, given the tough trading conditions with COVID-19 and the further delay in its new product launches, I wouldn’t be expecting too much from its shares over the next 12 months.

Sharing a similar view is Goldman Sachs. This morning its analysts put a neutral rating and $5.50 price target on the company’s shares.

It commented: “We believe NAN has successfully transitioned from a disruptive, niche technology provider to a proven leader in its field. However, as a result, there are many facets of execution which this management team must now deliver on to justify the current premium valuation. In particular, we see risk around the timing/impact of new product(s), penetration trajectory, and capital replacement cycle.”

The broker also spoke about its premium valuation and the aforementioned product pipeline.

“The stock trades on 72x NTM EV/EBITDA for 26% growth (vs. sector on 22x for 10%). We like the base business for what it is, and, purely on a DCF basis, we believe it is worth A$2.0/sh. As such, current valuation implies the market is allocating A$4.0/sh, i.e. 66% of total, to future product(s) which were first promised in FY17 but have so far shown negligible progress (the latest expectation is FY22).”

“We note that many ASX HC stocks do not stack up well purely on DCF, but we are not aware of any other example in global healthcare where the market has placed such a high value on a pipeline product with so much uncertainty. That is not to say that we believe it is overvalued, we just don’t have the data to assess either way, and after many delays, we would advocate prudence,” it concluded.

Food for thought.

More reading

• Why the Cyclopharma (ASX:CYC) share price surged to record high today
• Rhinomed (ASX:RNO) share price tries following Starpharma’s path to COVID glory
• A practical guide on how to invest in ASX shares
• Broker picks best ASX small cap stocks to buy from the reporting season
• 5 ASX shares I will never sell

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Nanosonics (ASX:NAN) share price in the buy zone? appeared first on Motley Fool Australia.

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Although the Australian share market tumbled notably lower on Thursday, this didn’t stop a number of shares from charging higher.

Some of these ASX shares even managed to climb to 52-week highs or better despite the market weakness.

Three ASX shares which achieved this are listed below. Here’s why they are scaling new heights:

Galaxy Resources Limited (ASX: GXY)

The Galaxy share price hit a 52-week high of $1.50 on Thursday. Investors have been fighting to get hold of Galaxy and other lithium miners recently on the belief that the price of the battery making ingredient has now bottomed. This would be a big positive for Galaxy after a sustained and severe drop in lithium prices over the last couple of years. One broker that feels Galaxy’s run could be over is Ord Minnett. Earlier this week it downgraded the company’s shares to a sell rating with a 90 cents price target. It feels a recovery in lithium prices is more than priced into its shares now.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price continued its positive run and reached a new record high of $15.56 yesterday. This has been driven largely by the investment platform provider’s strong performance in FY 2020 despite the pandemic. In FY 2020, Netwealth delivered an impressive 21.7% increase in underlying net profit after tax to $43.8 million. The catalyst for this was a 35% increase in funds under administration over the 12 months to $31.5 billion. More recently, investors responded positively to an announcement yesterday which revealed that it has made a strategic investment in specialist fintech data solutions provider, Xeppo.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price stormed to a record high of $10.35 on Thursday. When the online furniture and homewares retailer’s shares hit that level, it meant they were up a remarkable 292% since the start of the year. A strong performance in FY 2020 thanks to the shift to online shopping has largely been responsible for this incredible rise. Also supporting its ascent on Thursday was a broker note out of Goldman Sachs. Its analysts retained their buy rating and lifted their price target to $11.50. They believe Temple & Webster is well-positioned for growth over the coming years thanks to structural tailwinds.

More reading

• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• Temple & Webster (ASX:TPW) share price hits record high after broker lifts its price target
• Why De Grey, Scentre, Splitit, & Temple & Webster shares are pushing higher
• Netwealth share price on watch after strategic investment in Xeppo
• Leading brokers name 3 ASX shares to sell today

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Galaxy (ASX:GXY) and these ASX shares just hit new highs appeared first on Motley Fool Australia.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled notably lower. The benchmark index dropped 1.2% to 5,883.2 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rise.

The ASX 200 index is expected to rise on Friday despite some sizeable declines on Wall Street overnight. According to the latest SPI futures, the benchmark index is poised to open the day 21 points or 0.35% higher this morning. On Wall Street the Dow Jones fell 0.5%, the S&P 500 dropped 0.85%, and the Nasdaq tumbled 1.3% lower.

Tech shares to fall again?

The main drag on U.S. markets overnight was the tech sector once again. Tech giants Apple and Microsoft weighed heavily on the major indices and particularly the Nasdaq. Given how the Australian tech sector has a tendency to follow its lead, Friday could be another difficult day of trade for the likes of Afterpay Ltd (ASX: APT) and Nearmap Ltd (ASX: NEA).

Oil prices rise again.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 2% to US$40.98 a barrel and the Brent crude oil price is up 2.6% to US$43.30 a barrel. This follows comments out of OPEC urging producers to comply with output cuts.

Gold price tumbles lower.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could end the week in the red after the gold price tumbled lower. According to CNBC, the spot gold price is down 0.9% to US$1,952.30 an ounce. The precious metal dropped lower after the U.S. Federal Reserve offered no pointers on further potential stimulus.

Sydney Airport update.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be on watch this morning when it releases its traffic numbers for the month of August. Last month the airport operator revealed that passenger numbers were down 91.8% in July compared to the prior corresponding period. It looks likely to be a similar story in August due to border restrictions.

More reading

• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• What’s moving the Scentre (ASX:SCG) share price today?
• Why the Cyclopharma (ASX:CYC) share price surged to record high today
• ASX 200 gender inequality lets the team down
• 3 ASX growth shares I’d buy right now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re lucky enough to have $3,000 to invest into ASX growth shares, then I would suggest you consider putting these funds into the ones listed below.

Here’s why I think they could provide strong returns for investors over the 2020s:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Given the recent weakness on the Nasdaq index, I think this exchange traded fund would be a fantastic option for investors. It gives investors exposure to a group of the highest quality growth shares the world has to offer in a single investment. This includes the likes of Amazon, Apple, Facebook, Microsoft, Netflix, Nvidia, Tesla, and Google parent, Alphabet. Given the exceptionally positive long term growth prospects of the majority of companies in the fund, I believe it has the potential to outperform over the 2020s.

Bravura Solutions Ltd (ASX: BVS)

Another option to consider is Bravura Solutions. As with the Nasdaq 100 ETF above, I feel a sharp pullback in the Bravura share price has created a buying opportunity for investors. Especially given its very positive long term growth potential. Bravura is the financial technology company responsible for the Sonata wealth management platform. This popular wealth management platform allows advisers to connect and engage with clients via computers, tablets, or smartphones. Demand for the platform has been growing very strongly in the past few years and I expect more of the same once the pandemic passes. This should be supported by recent acquisitions, which have bolstered its offering and opened it up to new and lucrative markets.

ResMed Inc. (ASX: RMD)

A final growth share to consider buying is ResMed. It is a sleep treatment focused medical device company which I believe is well-placed for growth over the next decade. This is thanks to its high quality product portfolio and leadership position in a growing market. I believe ResMed’s masks and software-as-a-service solution are among the best on the market and likely to experience a surge in demand in the coming years as more and more people are diagnosed with sleep disorders. Management estimates that there could be upwards of 1 in 7 people impacted by sleep apnoea. However, the vast majority of these sufferers are undiagnosed at present.

More reading

• Why the Cyclopharma (ASX:CYC) share price surged to record high today
• 3 ASX shares to buy before this window of opportunity closes
• Why you should invest $5,000 into these ASX shares right now
• Interest rates to stay low for years? Buy these ASX dividend shares
• Buy BetaShares NASDAQ 100 ETF (ASX:NDQ) and these outstanding ETFs today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Bravura Solutions Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, Bravura Solutions Ltd, and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fortunately in this low interest rate environment, there are plenty of quality dividend shares trading on the Australian share market.

Three which I would buy today are listed below. Here’s why I think they are top options for income investors:

Accent Group Ltd (ASX: AX1)

Accent is the company behind retail store brands such as Athlete’s Foot, HYPE DC, and Platypus. It was a positive performer in FY 2020 despite the pandemic and posted a 7.5% increase in net profit after tax to $58 million. I’m confident there will be more of the same over the coming years thanks to its expansion plans, strong online business, and its on trend offering. In FY 2021, I expect the company to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this equates to a 5.7% dividend yield.

Dicker Data Ltd (ASX: DDR)

Dicker Data is a wholesale distributor of computer hardware, software, and cloud solutions to a partner base of over 5,500 resellers. It distributes a wide portfolio of products from the world’s leading technology vendors. This includes Cisco, Citrix, Dell, HP, Lenovo, Microsoft, and other Tier 1 global brands. Demand for this offering has been strong in recent years, underpinning solid earnings and dividend growth. This has continued in FY 2020 and put the company in a position to increase its dividend materially. Based on the current Dicker Data share price, it offers a forward fully franked 4.6% yield.

National Storage REIT (ASX: NSR)

National Storage is a leading self storage operator and could be a great option for income investors. Although the company is expecting its earnings to be flat at best in FY 2021, I still expect it to provide investors with a generous yield. After which, I’m optimistic a combination of organic growth and its growth through acquisition strategy will support solid earnings and distribution growth in the years that follow. Based on the current National Storage share price, I estimate that it offers a forward 4.2% distribution yield.

More reading

• Top ASX dividend shares to buy in September 2020
• 2 high quality ASX dividend shares with generous yields
• Smash low interest rates with these ASX dividend shares
• Why I would buy Coles (ASX:COL) and this ASX dividend share
• Why Accent, Afterpay, Nine, & PointsBet shares are dropping lower today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) dropped by more than 1% today, falling to 5,883 points.

Here were some of the highlights from the ASX 200:

Biggest movers and shakers

At the bottom of the ASX 200 performance table the Mineral Resources Limited (ASX: MIN) share price fell by 9.4%.

There were businesses that dropped heavily. The Breville Group Ltd (ASX: BRG) share price fell by 7.5%, the Fortescue Metals Group Limited (ASX: FMG) share price dropped 6.4%, the Whitehaven Coal Ltd (ASX: WHC) share price declined by 5.5% and the Afterpay Ltd (ASX: APT) share price dropped 5.4%.

There were some businesses that saw gains. The ASX 200 leader was the Orora Ltd (ASX: ORA) share price which climbed around 3%.

Netwealth Group Ltd (ASX: NWL)

Fintech business Netwealth announced today that it was making a strategic investment and partnership with Xeppo. Initially, Netwealth is buying a 25% stake, though it has an option to increase its investment to 50%.

The ASX 200 business said that Xeppo specialises in connecting, matching and reconciling data from a wide range of sources to support the wealth management, accounting and mortgage industries.

Netwealth said that the investment, although not initially financially material, will enable and accelerate a number of key initiatives Netwealth has previously announced and is expected to create a unique and market-leading proposition for multi-disciplinary and integrates wealth practices.

Matt Heine, joint managing director of Netwealth, said: “A key element of Netwealth’s strategy is to expand and enrich the data which underpins our current and future technology and which sits at the core of our ‘whole of wealth’ and client portal offering.

“From our recent research, we found that advice firms on average use between 12 and 15 technology systems in their business, all of which have different data models, significant data discrepancies and often overlap from a features perspective. For example, the Netwealth platform captures customer details as does an advice firm’s CRM, planning software, fact find and client portal.

“Working closely with Xeppo we can solve this challenge and enable systems to better connect and integrate with each other driving business efficiency and great client experiences.”

Heartland Group Holdings Ltd (ASX: HGH)

Heartland announced its FY20 result today.

It said that it generated net profit after tax (NPAT) of $72 million. It also said it made adjusted NPAT of $78.9 million (after removing the economic overlay of (pre-tax) $9.6 million) which was up 7.2%.

Its gross finance receivables was $4.6 billion, up 4.9%. The financial business said that its net interest margin (NIM) was 4.33%, flat compared to FY19. Net operating income increased by 13.2% to $235.3 million.

It declared a final dividend of 2.5 cents per share, taking the full year dividend to 7 cents per share. However, that was a reduction of 3 cents per share due to the restrictions imposed by the Reserve Bank of New Zealand.

In FY21 the company is expecting its net profit after tax for FY21 to be in the range of $83 million to $85 million.

Splitit Ltd (ASX: SPT)

Buy now, pay later business Splitit announced that it is forming a partnership with QuickFee Ltd (ASX: QFE). It will see ‘advice now, pay later’ interest-free instalments launched for accounting firms and law firms.

No applications are required as no new credit is being offered to clients. Splitit will be integrated directly into Quickfee’s payments portal. This service will initially be available to more than 1,000 accounting and law firms already using Quickfee.

Quickfee sees this as an opportunity because it expands its customer base to include smaller firms that typically fall outside of its credit risk framework. Advice businesses’ clients will be able to more easily access legal, accounting and financial advice.

Splitit said it was not able to determine how material this partnership will be.

The Splitit share price finished flat today.

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• Why the Splitit (ASX:SPT) share price is on the move today
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Netwealth. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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